After a week of losses, the meme coin market has seen a noticeable recovery.
Leading meme coins Shiba Inu (SHIB) and Bonk (BONK) have surged in double digits in the past seven days. However, Solana-based meme coin Dogwifhat (WIF) has bucked the trend as it has seen a decline over the same period.
Shiba Inu (SHIB) Stock Up Double Digits, Heading Towards Major Moving Average
Shiba Inu (SHIB) price is up 17% over the week under review. As of this writing, the meme coin is trading at $0.000015.
Based on the daily chart, the coin price is expected to cross its 20-day exponential moving average (EMA).
This moving average evaluates the short-term trends of an asset and identifies potential entry and exit points. It measures the average trading price of an asset over the past 20 days.
When the price of an asset is close to crossing this major moving average, it is a bullish signal. In the case of SHIB, it has been trading below the 20-day EMA since June 7. Therefore, a move above it is significant as it signals a shift in momentum towards buying and a potential price rally.
If this happens, the value of the currency will rise to be exchanged above the price of $0.000016.
Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030
However, if profit-taking starts, the price of the coin may witness a downward trend and drop below $0.000015.
The current uptrend for Bonk (BONK) stock is strong.
At the time of publishing, BONK is trading at $0.000022. Over the week under review, its price has increased by 14%.
Confirming the strength of the current uptrend, BONK’s Aroon Up line is at 92.86%. The Aroon indicator measures the strength of a trend and identifies potential price reversal points. When the Aroon Up line approaches 100, it indicates that the uptrend is strong and that the recent high was reached relatively recently.
Moreover, the token’s positive Chaikin Funds Flow (CMF) shows an influx of liquidity into the BONK market. This is essential to maintain its current price rise.
The Money Flow Index measures the flow of money into and out of an asset’s market. When it is above zero, it indicates a strong market, with asset holders providing capital to help support price growth. At the time of writing, BONK’s Money Flow Index is 0.02.
If the meme coin continues to benefit from the liquidity influx and demand remains high, its price could rise to $0.000023.
Read More: 11 Best Solana Meme Coins to Watch in July 2024
However, if the current trend reverses and sentiment turns from positive to negative, the token’s value will drop to $0.000021.
Dogwifhat (WIF) is the weird girl
Of the top five meme coins by market cap, Dogwifhat (WIF) is the only one to record a price drop in the week under review. The dog-themed token is trading at $1.56 at press time, having dropped 4% in the past week.
WIF’s Parabolic Stop and Reverse (SAR) indicator readings suggest that the price decline could extend into the end of the week. This suggests that the bearish sentiments chasing the meme coin are still strong.
The index points are holding above their price at the time of publication of this report, indicating that the market is in a downtrend and may continue to decline.
The Parabolic SAR indicator is used to identify potential trend direction and reversals. When its dotted lines are placed above the price of an asset, selling pressure is high.
If this trend continues, the price of WIF will drop to $1.50.
Disclaimer
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